Grandblue Environment (SH:600323) Xin Lang Cai Jing·2025-08-30 00:53Core Viewpoint - The company reported a stable performance in H1 2025, with revenue and net profit showing slight growth, driven by the integration of Yuefeng Environmental and improvements in cash flow management [1][4]. Financial Performance - H1 2025 revenue reached 5.763 billion yuan, a year-on-year decrease of 1.05%, while net profit was 967 million yuan, an increase of 8.99% [1]. - Q2 2025 revenue was 3.162 billion yuan, up 1.73% year-on-year and 21.60% quarter-on-quarter, with net profit of 547 million yuan, reflecting a year-on-year increase of 8.03% and a quarter-on-quarter increase of 30.17% [1]. - The company’s operating cash flow net amount was 1.221 billion yuan, a year-on-year increase of 280 million yuan, or 29.77% [4]. Business Segmentation - The solid waste treatment business generated revenue of 2.949 billion yuan, with a year-on-year decrease of 3.36%, while net profit was 724 million yuan, up 24.51% [3]. - The revenue from the waste incineration business was 2.126 billion yuan, a year-on-year increase of 17.63%, with net profit of 627 million yuan, up 13.25% [3]. - The company’s power generation volume increased by 21.10% year-on-year to 2.932 billion kWh, and the heat supply volume rose by 41.60% [2]. Cash Flow and Dividends - Free cash flow increased by 495 million yuan year-on-year to 338 million yuan, with a significant contribution from the integration of Yuefeng Environmental [4]. - The company plans to distribute a mid-term dividend of 0.25 yuan per share, totaling 204 million yuan, reflecting a payout ratio of 21.08% [4]. Future Outlook - The company maintains its earnings forecast, projecting EPS of 2.36, 2.62, and 2.77 yuan for 2025-2027 [5]. - The target price is set at 39.18 yuan, based on a PE ratio of 16.6 times for 2025, reflecting confidence in the company’s growth potential and the benefits from the acquisition of Yuefeng [5].